Will the real Martin Wolf please stand up?
Martin Wolf, chief economics columnist for the Financial Times,
wrote an article
earlier this month in which he concluded that the West has no need to worry that China will buy its way into global leadership in key industries through foreign acquisitions -- at least for now.
Having just returned from China -- where he met with executives of Chinese IT Services firms -- our own Martin Wolf
has firsthand knowledge that this conclusion is true for the Chinese IT industry.
That's because the IT Services industry in China is just gathering steam, and currently lags behind the global leaders, which for the most part can be found in the United States and India. Compared with IT giants such as IBM Global Services, HP and Accenture in the United States -- and Tata Consultancy Services, Infosys and WiPro in India -- Chinese IT Services leaders are relatively small with a tiny global market share. Plus, the biggest buyers of IT Services are in North America and Western Europe -- regions where companies are more inclined to use and trust U.S. and Indian providers.
|Marty Wolf is interviewed by Angela Song of the Dalian Financial & Economic Channel|
However, China does have a major advantage over Indian IT companies: a potentially huge domestic market for outsourcing. No such market exists in India. And as domestic demand grows, it could catapult Chinese companies into a phase of rapid growth in both size and sophistication -- essential to be able to compete on the global stage.
What must Chinese IT Services companies do to prepare themselves for that day?
To read our Martin Wolf's view of the opportunities Chinese IT Services companies have in the short term -- that will make them more globally competitive in the long term -- check out his article published yesterday in Yahoo! Finance.
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